Construction Loan Calculator

Q: How much can I borrow on a construction loan?

The loan is capped both by cost and by value: a percentage of your total project cost (land plus construction budget) and a percentage of the appraised completed value. You get the lower of the two. Experienced builders typically qualify for the higher leverage tiers.

Q: What is the difference between LTC and LTV on a construction loan?

LTC (loan-to-cost) measures the loan against what the project costs to build; LTV (loan-to-value) measures it against what the finished property appraises for. A project with a thin margin between cost and completed value is usually LTV-limited, which means more equity from the builder.

Q: Do I pay interest on the whole construction loan from day one?

Typically no. Funds are released in draws as work is completed, and interest accrues only on what has been drawn. That is why this calculator estimates carry on an average outstanding balance of about half the loan rather than the full amount for the full term.

Size the loan before you break ground.

Land / lot cost$Construction budget$Completed value$Max loan-to-cost (LTC)%Max loan-to-value (LTV)%Interest rate%Build timelinemo

Max construction loan

$467,500

Limited by project cost (LTC)

Project cost is the binding cap here, so the loan scales with your budget up to the LTV ceiling.

Total project cost$550,000

Cap at 85% of cost$467,500

Cap at 70% of value$546,000

Cash you bring$82,500

Est. interest carry (avg 50% drawn)$23,375

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Inputs are pre-filled with example figures, edit them to match your deal. Estimates only, for planning purposes, and not a rate quote, an offer, or a commitment to lend. Your actual rate and terms depend on a full review of your deal.

Construction lenders size a loan two ways at once: as a percentage of your total project cost (loan-to-cost, LTC) and as a percentage of the completed value (loan-to-value, LTV). Your max loan is whichever cap is lower. This calculator shows which constraint binds on your project, how much cash you need to bring, and a planning estimate of the interest you will carry during the build.

Common questions

How much can I borrow on a construction loan?

What is the difference between LTC and LTV on a construction loan?

Do I pay interest on the whole construction loan from day one?

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